YRCW: “WE EXPECT NO SIGNIFICANT GROWTH IN 2009 OR 2010″
YRC Worldwide reported an absolutely disatrous quarterer after the bell this evening. The large transportation company is an excellent barometer of economic health, but while they see signs of stabilization they see no signs that lead them to believe there will be a recovery in 2009 or 2010. CEO Bill Zollars said in the press release:
“We have seen signs of encouragement in the economy including stabilization in our absolute volumes, though we think it is too early to confirm that this is the bottom of the recession,” Zollars stated. “We remain optimistic that economic improvement could happen earlier than expected but we do not have it reflected in our financial plans until we progress through 2010.”
His tone on the conference call was far less optimistic, however. Zollars said the “operating environment remains very challenging” and that he doesn’t “expect significant growth in 2009 or 2010″. He does confirm what we’ve been hearing for months – the economy has stopped falling off a cliff. He said year over year volumes have not improved, but volumes have stabilized. Tonnage is “remarkably consistent” according to Zollars.
Bill Zollars is not interested in keeping YRCW afloat and since he is there in name ony right now and YRCW has started running like Roadway. YRCW has in the last couple of weeks been gaining some of their customers back. As we all know Roadway was not the problem it was Yellow that was being run into the ground and Roadway was making money. My opinon is that Zollars just wants out of the union as he does own another YRCW that is not union and is making lots of money, buying new equipment and aggressively hiring. The employees of this company are also getting bonuses. Mr Zollars combined Yellow and Roadway together in order to get rid of he union, with no regard to the employees of these two companies. YRCW needs to be giving a chance and the negative press about them needs to stop.
Sheila – two questions.
1. What is the other venture of Zollars’ that you are referring to?
2. Why are customers going to go back after a quarter like this? They are afraid of having their inventory stuck in the system…
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